Basic Contribution
As an eligible Plan participant, you must make a basic employee contribution of 2% of your retirement-eligible salary as a condition of employment, starting on the first day of the month following six full months of employment.
University Contribution
You will be eligible for a monthly University contribution to the Plan on your behalf, also determined as a percentage of your eligible salary, beginning the first of the month following completion of six months of employment. University contributions vary depending upon your age and years of service. The following table illustrates the different levels of employee and University contributions:
Basic Employee Contribution | University Contributions For Employees Below Age 55 | University Contributions For Employees Ages 55 or Above* |
---|
2% | 10% | 12% |
*Effective the first of the month following your 55th birthday.
Voluntary Contribution
Eligible faculty and exempt employees may make additional voluntary contributions starting on the first day of the month following their date of employment. The minimum contribution is $200 per year. You may change your level of additional voluntary contributions monthly in Workday.
Maximum Deferral
Your maximum voluntary contribution, otherwise known as the maximum elective deferral, is established by federal guidelines. Your mandatory employee contributions to the Plan (i.e., 2%) are not counted as part of your contribution limit.
Annual contribution limits as set by the IRS for the current year.
Your employment status, percent time, salary, and leaves of absence may affect the amount you can defer. Additionally, the contribution limit set by the IRS applies to all retirement plans with elective deferrals in which you may be participating, such as another employer's 401(k) or 403(b) plans.
If you are, or will be saving for retirement through another personal plan or another employer's plan, you should inform the Benefits Office representative at your new hire orientation, so that we can assist you with identifying the applicable limit for your contributions.